The Data Shows the Demand and Supply for Sugar

The data shows the demand and supply for sugar:
quantity of kilograms (in thousand per week)

-Refer to the information above to answer this question.What would happen if the government were to establish an effective price floor of $3 per kilogram of sugar?

A) There would be a shortage of 40,000 kilograms of sugar in the market.
B) There would be a surplus of 40,000 kilograms of sugar in the market.
C) The farmers could sell only 40,000 kilograms of sugar in the market.
D) The market would be in equilibrium selling 50,000 kilograms of sugar in the market.
E) The farmers would sell all 70,000 kilograms of sugar in the market.

Correct Answer:

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